Valhi (NYSE:VHI) Stock Crosses Below 200 Day Moving Average – Should You Sell?

Valhi, Inc. (NYSE:VHI)’s share price crossed below its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $14.93 and traded as low as $14.11. Valhi shares last traded at $14.31, with a volume of 4,587 shares traded.

Analyst Ratings Changes

A number of research analysts recently weighed in on VHI shares. Wall Street Zen raised Valhi to a “buy” rating in a research note on Saturday, September 19th. Weiss Ratings upgraded shares of Valhi from a “sell (d)” rating to a “sell (d+)” rating in a research report on Monday, August 17th. One investment analyst has rated the stock with a Sell rating. According to data from MarketBeat.com, the stock presently has an average rating of “Sell”.

Valhi Price Performance

The company has a quick ratio of 1.90, a current ratio of 3.37 and a debt-to-equity ratio of 0.42. The firm’s 50-day moving average is $16.41 and its 200-day moving average is $14.93. The company has a market cap of $404.55 million, a PE ratio of -7.98 and a beta of 1.06.

Valhi (NYSE:VHI) last announced its quarterly earnings results on Thursday, August 6th. The basic materials company reported $0.78 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.96 by ($0.18). The company had revenue of $606.10 million for the quarter, compared to analysts’ expectations of $606.10 million. Valhi had a negative net margin of 2.36% and a negative return on equity of 2.77%.

Valhi Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 24th. Investors of record on Thursday, September 3rd were paid a $0.08 dividend. The ex-dividend date of this dividend was Thursday, September 3rd. This represents a $0.32 annualized dividend and a yield of 2.2%. Valhi’s dividend payout ratio is -17.88%.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of VHI. BlackRock Inc. acquired a new stake in Valhi during the second quarter worth about $2,776,000. Empowered Funds LLC purchased a new position in Valhi during the second quarter worth approximately $2,055,000. Bank of New York Mellon Corp purchased a new stake in Valhi in the 2nd quarter worth $687,000. GSA Capital Partners LLP acquired a new stake in Valhi in the 2nd quarter worth about $321,000. Finally, Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of Valhi in the second quarter worth approximately $148,000. 3.83% of the stock is owned by institutional investors and hedge funds.

About Valhi

Valhi, Inc is a diversified holding company with interests in chemicals, component products and other industrial businesses. Its operations are conducted primarily through majority-owned subsidiaries, including Kronos Worldwide, Inc, a global producer and marketer of titanium dioxide pigments used to provide whiteness, brightness and opacity in products such as coatings, plastics, paper and inks.

Through CompX International Inc, Valhi also participates in the component-products industry.